Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Fletcher, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup,
Fletcher, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. Pregeleminen on allocation rate Materials handling Machine setup Insertion of parts Finishing Requirement 2. Job 86 required the production of 100 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Begin by selecting the formula to allocate overhead (OH) costs. Allocated mfg. overhead costs Data table Activity Materials handling Machine setup Insertion of parts Total Budgeted Cost Allocation Base $ 6,000 Number of parts 3,300 Number of setups 40,000 Number of parts 84,000 Finishing Finishing direct labor hours $ 133,300 Total Job 86 required the production of 100 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. (Round all amoun Job 86: Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs Allocated Mfg. OH Cost Fletcher expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 2,500 parts, require 10 setups, and consume 2,500 hours of finishing time. Print Done -
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started